17/05/2016

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:00:00. > :00:07.This is Business Live from BBC News with Sally Bundock

:00:08. > :00:20.the cost of cyber-crime will hit $2 trillion by 2019.

:00:21. > :00:21.We'll assess the growing threat to business.

:00:22. > :00:33.Live from London, that's our top story on Tuesday 17th May.

:00:34. > :00:35.On high alert - the multi-trillion dollar problem that

:00:36. > :00:46.Today a new warning about the threat of hacking and its impact on global

:00:47. > :00:52.Also in the programme: A drop in the ocean -

:00:53. > :00:55.the boss of one of the world's biggest oil companies warns there's

:00:56. > :00:59.more volatility ahead on global markets.

:01:00. > :01:02.And the price of oil is on the brink of hitting $50 a barrel,

:01:03. > :01:05.so markets are celebrating the fact but how long will it last?

:01:06. > :01:07.We're across every twist and turn.

:01:08. > :01:09.And fashioning a future for other entrepreneurs.

:01:10. > :01:11.We'll speak to iconic handbag designer Anya Hindmarch

:01:12. > :01:14.about her rise to fashion fame and how she wants to share her

:01:15. > :01:22.And after an Austrian entrepreneur has been hugging Brits outside

:01:23. > :01:25.Kings Cross Station, we want to know how you greet

:01:26. > :01:31.Do you go in for a hug or is a handshake always enough?

:01:32. > :01:41.Let us know, use the hashtag, #BBCBizLive.

:01:42. > :01:53.Today business leaders face a fresh warning over

:01:54. > :01:59.A leading financial services industry group

:02:00. > :02:01.headed by Barclays chairman John McFarlane says advances

:02:02. > :02:03.in technology are creating new pathways for criminals.

:02:04. > :02:06.The taskforce has recommended that businesses receive tax

:02:07. > :02:08.breaks to help improve cyber-security and that

:02:09. > :02:12.more support is given to businesses in the form

:02:13. > :02:29.The guidelines also call for greater collaboration between policy-makers,

:02:30. > :02:32.businesses and the police in tackling the problem of cybercrime.

:02:33. > :02:34.Some analysts predict the global cost will reach

:02:35. > :02:36.$2 trillion by the end of the decade.

:02:37. > :02:39.To put this in perspective, that's more than the value

:02:40. > :02:48.Dr Jessica Barker, a cyber-security consultant at JL

:02:49. > :02:57.That $2 trillion figure is a scary one. It is not our business is not

:02:58. > :03:02.taking this seriously but that the technology outpaces how quickly they

:03:03. > :03:06.can respond? Yes, criminals are becoming more sophisticated and more

:03:07. > :03:11.aware that they can carry out crime online, and we have legacy problems

:03:12. > :03:15.with old IT systems and a lot of the issues are around human nature and

:03:16. > :03:20.how we engage with the Internet. I wanted to ask you that, where is the

:03:21. > :03:29.weak link in the chain? Is it IT systems or is it us, the people in

:03:30. > :03:32.organisations that are the problem? It is how we engage with technology,

:03:33. > :03:35.it is said that up to 95% of cyber attacks are down to human error so

:03:36. > :03:38.there are all sorts of things we can do in raising awareness and change

:03:39. > :03:42.in behaviour when we use the Internet. A relatively new word that

:03:43. > :03:58.has come about of late, we are used to spam attacks and phishing attacks

:03:59. > :04:03.but what is spear-phishing? It is phishing but the criminals will have

:04:04. > :04:06.done their research in a way of seeing how they can have the most

:04:07. > :04:11.effect. Let's talk about what you can do, or not only do get these

:04:12. > :04:15.e-mails but what business can be looking at, and it is a ground up

:04:16. > :04:19.approach? It is, the check list in the report released today is

:04:20. > :04:23.helpful. I would say organisations need to understand what information

:04:24. > :04:27.they have, what is of value to them and what would be of value to an

:04:28. > :04:31.attacker, and then looking at how they could take care of that

:04:32. > :04:35.information and really thinking about the human elements, how are

:04:36. > :04:39.you training of staff, building a positive and empowering culture

:04:40. > :04:46.around cyber-security. It is about the value of the information that an

:04:47. > :04:50.organisation has, they might not think it is valuable, it is just how

:04:51. > :04:54.they operate, but in the wrong hands it could be lucrative, but hugely

:04:55. > :04:58.damaging for the business? Absolutely, when we work with

:04:59. > :05:01.information every day we become desensitised to the value of it so

:05:02. > :05:05.it is worth taking a step back and considering what information you

:05:06. > :05:10.have, it it was lost or stolen or no longer available to your business

:05:11. > :05:13.what would the crucial information be that would be the most damaging,

:05:14. > :05:18.and what would damage your reputation? Very sobering stuff.

:05:19. > :05:25.Jessica Barker, thank you very much. US drugs giant Pfizer will acquire

:05:26. > :05:29.the maker of a new eczema treatment The firm announced a deal

:05:30. > :05:33.with the board of California-based It comes weeks after Pfizer

:05:34. > :05:37.abandoned a $160bn merger with Irish The world's biggest bank

:05:38. > :05:42.is buying a massive vault in London to boost its gold

:05:43. > :05:46.and precious metals business. The Industrial and Commercial Bank

:05:47. > :05:49.of China will be the first Chinese It's unsurprisingly in a secret

:05:50. > :05:54.location and can hold up to 2,000 metric tons of gold,

:05:55. > :06:10.silver and platinum. Lorry drivers are expected to put

:06:11. > :06:12.up roadblocks around France's major cities,

:06:13. > :06:15.and unions are calling for a strike Its all aimed at rejecting measures

:06:16. > :06:19.to loosen the country's The disruptions have been prompted

:06:20. > :06:22.by the government's decision last week to use a special measure

:06:23. > :06:35.to pass the legislation A quick look at the live page, and

:06:36. > :06:40.this is quite apt, this story has come through about Twitter that it

:06:41. > :06:44.is to stop counting photos and links in it 140 character limit. Many

:06:45. > :06:48.people get frustrated by how little they can write on Twitter sometimes,

:06:49. > :06:51.when you add a photograph it takes pressures characters away from you

:06:52. > :06:56.but apparently that will no lover be the case, that is to be removed from

:06:57. > :07:00.the limits. A quick spin through there, this is Anya Hindmarsh and we

:07:01. > :07:05.will be speaking to later in the programme, we will be speaking to

:07:06. > :07:08.her about this because she is one of 40 leading business figures speaking

:07:09. > :07:12.at an event today as part of a plan to share knowledge and information

:07:13. > :07:16.they have learned in their career to a new generation of entrepreneurs,

:07:17. > :07:19.so we will speak with her later in the programme.

:07:20. > :07:21.That get more detail on that story we have just mentioned.

:07:22. > :07:23.It's already the world's biggest bank but it's

:07:24. > :07:27.China's ICBC has agreed to buy a massive vault

:07:28. > :07:30.in London that stores gold, silver and platinum.

:07:31. > :07:40.We said we don't know where it is, for good reason, but what more do we

:07:41. > :07:45.know? What we know is that it is within

:07:46. > :07:50.the M25 motorway which circles London, so you take a guess, that

:07:51. > :07:55.could be anywhere! It is being sold by Barclays and can hold up to 2000

:07:56. > :08:02.metric tonnes of gold, silver, platinum and palladium. What we know

:08:03. > :08:09.is that it is one of the largest faults in Europe, and it will give

:08:10. > :08:13.ICBC a lot more influence over the pricing and storage of precious

:08:14. > :08:18.metals. China accounts for more than a quarter of global gold demand but

:08:19. > :08:23.trading of the yellow metal really is centred still out of London and

:08:24. > :08:26.New York. We don't really have financial details but the deal is

:08:27. > :08:31.expected to be completed in July and we have heard from ICBC, who have

:08:32. > :08:35.been saying that the purchase would help them to better executed their

:08:36. > :08:39.strategy to become one of the largest Chinese banks in the

:08:40. > :08:44.precious metals market. Thank you so much. It is like the

:08:45. > :08:47.Hollywood movie, how to find that fault, not quite Hatton Garden,

:08:48. > :08:52.whole different story. Let's look at the market across Asia

:08:53. > :08:56.today. A strong day for Japan and Hong Kong, a lot of that to do with

:08:57. > :09:00.the fact that the oil price has been edging higher and higher, almost $50

:09:01. > :09:05.a barrel for Brent Crude, when it hits we will let you know. The night

:09:06. > :09:11.before on Wall Street there, always bodes well for a better day in Asia.

:09:12. > :09:15.Gained across the board in Europe, energy stocks doing well but

:09:16. > :09:21.corporate news helping markets. In London, Vodafone opening fire,

:09:22. > :09:24.something like 2.3%, coming out with its latest earnings news showing a

:09:25. > :09:31.return to revenue growth in Europe. What is ahead in the US?

:09:32. > :09:37.After a tepid start of the year, how is the US economy faring? Three

:09:38. > :09:43.economic reports should shed some light, one of them is the labour's

:09:44. > :09:47.department release of the consumer Price index which should show if

:09:48. > :09:52.prices fell all roads in April. Most economists expect the cost of living

:09:53. > :09:55.has gone up given that oil prices have been recovering, a sign perhaps

:09:56. > :10:00.that inflation may be moving closer to the Federal Reserve's goal. A

:10:01. > :10:07.separate report from the Federal reserve may show that production

:10:08. > :10:10.rose in April, evidence that the slump in Manufacturing is over. And

:10:11. > :10:15.a key driver of economic growth is the housing market, also a powerful

:10:16. > :10:19.signal of consumer Centre meant. The commerce Department will provide the

:10:20. > :10:22.latest update with a report on housing starts for April, have they

:10:23. > :10:27.picked up after falling in March? We will find out bust up

:10:28. > :10:30.Joining us is Manji Cheto, an analyst bust up for the global

:10:31. > :10:39.let's talk oil, it is one of those things we have discussed before,

:10:40. > :10:46.prices coming down, they are creeping up steadily, rising, we

:10:47. > :10:49.were talking about $40 a barrel, not a huge rise but it has been

:10:50. > :10:54.consistent? For me, the big thing is, does

:10:55. > :10:59.anyone know where it is going to go and how long? If you look at the oil

:11:00. > :11:07.futures, they suggest we are on the rise of a rise, and that option has

:11:08. > :11:11.come primarily from Nigeria and Venezuela, and to an extent Canada.

:11:12. > :11:15.For the next two months we might see oil prices continued to rebound but

:11:16. > :11:18.I'm not sure it is a long-term storage. Fill us in our Nigeria in

:11:19. > :11:25.particular because tomorrow we have been told there could be a general

:11:26. > :11:29.strike, people 60 about petrol prices going higher, queueing for

:11:30. > :11:33.petrol. The interesting thing is the strike has been triggered by the

:11:34. > :11:37.fact that oil prices have been rising and therefore the Government

:11:38. > :11:41.has had to hike oil prices because Nigeria import all of its refined

:11:42. > :11:47.crude, so what is interesting is the Government is in a position where it

:11:48. > :11:50.might have to read trace, it might not have to capitulate to union

:11:51. > :11:55.demands because all opera this will continue to go up because of the

:11:56. > :12:00.disruptions in Nigeria. Time is against us but you will talk us

:12:01. > :12:02.through some stories later including top excuses from bosses as to why

:12:03. > :12:05.their results are not good. Still to come,

:12:06. > :12:12.sharing the knowledge! The founder of one of the world's

:12:13. > :12:15.most iconic accessories brands, Anya Hindmarch,

:12:16. > :12:17.is here and she wants to share what she's learned with

:12:18. > :12:19.a new generation of entrepreneurs. You're with Business Live from BBC

:12:20. > :12:21.News. Britain's biggest banks will have

:12:22. > :12:27.to limit unauthorised overdraft fees and join a price-comparison website

:12:28. > :12:36.to give customers better service. Those are the findings

:12:37. > :12:40.of an 18-month investigation into our high street

:12:41. > :12:42.banks. It found the majority

:12:43. > :12:44.of customers didn't know if they were getting good value

:12:45. > :12:46.for money from their banks, with most staying with the same

:12:47. > :12:53.lender for over a decade. Alisdair Smith is chairman

:12:54. > :12:55.of the Retail Banking Investigation Panel at the Competition

:12:56. > :13:06.and Markets Authority. We have put forward a wide-ranging

:13:07. > :13:11.packet of resolutions but the core is in crew think the quality of

:13:12. > :13:18.information that bank customers get about their banks so that finding

:13:19. > :13:22.out what is the best bank for you should become as easy as finding out

:13:23. > :13:30.the best local restaurant. The kind of technology that drives smartphone

:13:31. > :13:34.apps is being developed for banking and consumers will get much better

:13:35. > :13:38.quality information to enable them to make good decisions. It is about

:13:39. > :13:43.those decisions that we simply are not making at the moment, staggering

:13:44. > :13:46.numbers of us sticking with the same provider, especially when it comes

:13:47. > :13:50.to things like small business, you take a loan from the same bank that

:13:51. > :13:53.gives you your current account, it is not competitive enough and it is

:13:54. > :13:58.difficult to move around the banking industry, is it not? It is, and

:13:59. > :14:03.particularly for small businesses because their own bank knows them

:14:04. > :14:07.well and it is hard for them to find out what other banks can offer, so

:14:08. > :14:14.we are very keen to open up information sources not just for

:14:15. > :14:15.personal customers but for small and medium-sized businesses as well.

:14:16. > :14:57.Thank you so much for joining us. Our top story, the new measures

:14:58. > :15:03.needed to defend against hackers and other cyber-security threats

:15:04. > :15:05.as businesses struggle to keep up The cost of cyber-crime is expected

:15:06. > :15:22.to hit $2 trillion by 2019. What does the luxury goods market

:15:23. > :15:24.tell us about the state The recent slowdown in China has hit

:15:25. > :15:32.many luxury brands including They've traditionally relied

:15:33. > :15:35.on markets like China to prop up The consulting firm Bain says sales

:15:36. > :15:42.of "personal" luxury goods which include watches,

:15:43. > :15:47.clothing and leather goods were worth $285 billion last year

:15:48. > :15:50.and one person who knows the market She started off by importing a small

:15:51. > :15:57.number of handbags from Italy, but now her brand appears

:15:58. > :15:59.in department stores The company is known

:16:00. > :16:03.for its handbags and accessories and counts the Duchess

:16:04. > :16:06.of Cambridge among its fans. The brand's founder Anya Hindmarch

:16:07. > :16:15.joins us in the studio. She's currently the chief creative

:16:16. > :16:25.officer of the company. Nice to see you, welcome. Let's

:16:26. > :16:28.start with how you began. It is an interesting tale. It is about

:16:29. > :16:32.importing bags and you realised they were in demand. You sold them to a

:16:33. > :16:36.department store and it took off from there. We made it sound simple.

:16:37. > :16:41.Business is quite simple actually. I was 18 and the joy of being so

:16:42. > :16:45.young, you just don't have any, you're risk happy and you just kind

:16:46. > :16:51.of get going and that first step in business is the really important one

:16:52. > :16:55.and I think people often are quite nervous about word entrepreneur, but

:16:56. > :16:59.you just need to get going really. I was in Florence for two months and I

:17:00. > :17:03.saw a bag that I thought would sell really well in the UK and I

:17:04. > :17:06.approached a factory and I made sample and I started designing and

:17:07. > :17:11.we opened stores and sold to stores. Here we are all these years later.

:17:12. > :17:14.How receptive were the big department stores to you and the

:17:15. > :17:19.leading fashion magazines that you approached as well? Well, I think if

:17:20. > :17:23.you have a good product, they are receptive, you have to be tee anyway

:17:24. > :17:26.shoulds to knock on their door and get an appointment, but it is

:17:27. > :17:30.do-able. If you have a good idea and you're determined you can make it

:17:31. > :17:33.work. What's been the biggest lesson for you in business? You said it is

:17:34. > :17:39.very simple, it is just going out there and taking risks. Is there

:17:40. > :17:50.anything that went not as you planned? I liken business to

:17:51. > :17:56.sailing. You take a bit left and you take a bit right. Tomorrow, we have

:17:57. > :17:59.43 of the most interesting entrepreneurs at 6pm talking from

:18:00. > :18:05.Glasgow down to Brighton so we're excited about that and the idea is

:18:06. > :18:10.to share the stories and talk about the highs, the lows, so I think I

:18:11. > :18:14.would be very excited to encourage people to enjoy the benefit and the

:18:15. > :18:19.positives of having your own business, being in control. This

:18:20. > :18:23.event you are talking about is called Entrepreneurs Exchange which

:18:24. > :18:30.is happening tomorrow. It has not happened before, I understand, it is

:18:31. > :18:33.a brand-new event. I said earlier we found many young entrepreneurs talk

:18:34. > :18:36.about the fact it is not as easy to set-up in the UK as it is on the

:18:37. > :18:41.other side of the Atlantic for example? Actually, no, I think it is

:18:42. > :18:45.a really great place to start a business, the UK. It is

:18:46. > :18:49.geographically really well placed and we have a stable set of laws and

:18:50. > :18:53.currencies and it is a good place to be supported. I was very supported

:18:54. > :18:56.and there are lots of grants and things that you can get help with.

:18:57. > :19:00.It is a great place to be and I think that actually most of the time

:19:01. > :19:05.that the biggest thing is you need the advice, you need the mentorship.

:19:06. > :19:08.This is like a group mentoring project tomorrow. We have got nearly

:19:09. > :19:12.3,000 people signed up. There are very few places left if people check

:19:13. > :19:16.on website, but it will be a really important moment. It is a one off,

:19:17. > :19:20.but it might continue. You talk about getting grants and funding,

:19:21. > :19:24.did you get that moral support, someone who hold your hand in a big

:19:25. > :19:28.decisions, going to big department stores and saying, "Look, take my

:19:29. > :19:32.product." It is a dawning thing to do when you are just setting out in

:19:33. > :19:37.business. Was there anyone there to give thaw support that you're

:19:38. > :19:40.offering other people? I have come from a family of business people. I

:19:41. > :19:44.have a huge support network like that, but I think actually people

:19:45. > :19:49.really do need to find often actually a local group of

:19:50. > :19:54.entrepreneurs who you can meet once a month and share the same dilemmas,

:19:55. > :19:57.because whatever industry you're in, it might be talent retention or

:19:58. > :19:59.issues about access to markets or whatever it is and the more you

:20:00. > :20:03.share and support each other, the more likelihood you have for

:20:04. > :20:07.success. Talking of access to markets, you have been successful in

:20:08. > :20:11.accessing Asia which is the place to be right now if you're selling

:20:12. > :20:15.luxury goods. Talk us through that because it was a long journey, you

:20:16. > :20:18.were there quite early which is a good thing I assume? I'm excited

:20:19. > :20:21.about ash yasmt people are scared about exports and scared about

:20:22. > :20:26.overseas, it is not a big deal truly. You know, the great thing

:20:27. > :20:29.about having a website you export automatically without realising it,

:20:30. > :20:33.you get orders all the time. Our first ever ground floor store was in

:20:34. > :20:37.hong don'ting and we have stores in Japan and in Malaysia and Singapore

:20:38. > :20:41.and so on, so on. It is a very exciting time. In terms of your

:20:42. > :20:46.stores, it is a mixture, isn't it? You don't have your high street shop

:20:47. > :20:52.as it were, you are a mix, depending on where you are and which country

:20:53. > :20:55.you're in? You have stores. Some might be stores you control

:20:56. > :20:58.yourself. Some markets you need to have a local partner and other times

:20:59. > :21:02.you have a store within a department store so there is a mix and then you

:21:03. > :21:08.might wholesale and sell to the department stores there. So that mix

:21:09. > :21:11.is a healthy one to have. We have asked everyone about their view on

:21:12. > :21:16.Brexit, the EU referendum, it is hard to get away from. Would an in

:21:17. > :21:21.or an out vote make a difference? I'm not going to go there this

:21:22. > :21:24.morning. I think I really want to focus on entrepreneurs today. It is

:21:25. > :21:29.a really important decision, I have been quite public about my views,

:21:30. > :21:31.but I will save that for another time if I may. Thank you for coming

:21:32. > :21:38.in. Thank you. The boss of one of the world's

:21:39. > :21:41.biggest oil companies has warned of more volatility ahead

:21:42. > :21:43.on global markets. Patrick Pouyanne told the BBC

:21:44. > :21:46.that there was no top or bottom He said the solution

:21:47. > :21:50.instead was for big oil Last year, his company

:21:51. > :21:53.did just that, making The BBC's John Moylan spoke to him

:21:54. > :21:58.about the future of North Sea, a region that has been providing oil

:21:59. > :22:17.for Britain for decades. Oil and gas have a future. But there

:22:18. > :22:22.is a cycle, when the price went down dramatically, 130 today's $30.

:22:23. > :22:25.Everyone is managing the cash cautiously and global investments,

:22:26. > :22:31.globally speaking not only in the North Sea have been driven down to

:22:32. > :22:36.$400 billion. So the North Sea is more mature. So that's clear a That

:22:37. > :22:41.we need to be probably smarter on the cost management here, but there

:22:42. > :22:45.is a future for the North Sea. That was the boss of Total there

:22:46. > :22:59.speaking to John Moylan. We asked how you greet your

:23:00. > :23:03.co-workers. There is an Austrian entra praners greeting Brits outside

:23:04. > :23:09.King's Cross Station in London with a hug. Many of you getting in touch.

:23:10. > :23:13.One viewer says hugs provide better stimulus, I am all for hugs, but

:23:14. > :23:19.perhaps you wouldn't hug your boss. Well, maybe you could start! A

:23:20. > :23:22.viewer got in touch from Italy and says it depends on the nature of the

:23:23. > :23:26.relationship. Two kisses because I am Italian. This is where the big

:23:27. > :23:30.sort of social divide comes in actually. Europeans, a lot more

:23:31. > :23:37.touchy, feely, a lot more close shall we say? A fist pump! If you're

:23:38. > :23:45.American. What about you? I'm touchy, feely. I

:23:46. > :23:51.do a lot of work in Africa were a lot of people were touchy feely

:23:52. > :23:55.until the Ebola outbreak. It has its consequences. This is about company

:23:56. > :23:59.bosses who every time we talk about results, there is an excuse. Profits

:24:00. > :24:04.rose by 2%. It was because of the warm weather, the cold weather, any

:24:05. > :24:08.million excuses, the wrong weather, about not getting right stuff in the

:24:09. > :24:10.right stores at the right time. The Wall Street Journal, corporate

:24:11. > :24:16.excuses are bound in tough times, what have you found? For me, you

:24:17. > :24:20.know, in the UK weather is always a good excuse, isn't it? The weather

:24:21. > :24:24.is all really bad and you can blame that on your bad sales! I think a

:24:25. > :24:28.lot of analysts are saying if you know that the weather is already bad

:24:29. > :24:30.you should be factoring that into your decision making, but what

:24:31. > :24:35.manager is going to stand up and say the reason why we had bad sales is

:24:36. > :24:38.because we had a really bad strategy this year, they are not going to say

:24:39. > :24:42.that, are they? I don't think the excuses are going to go away and if

:24:43. > :24:45.you are in Britain, the weather is a good one. It depends what the

:24:46. > :24:50.company does. Retailers, to be fair the weather affects what we buy and

:24:51. > :24:55.went we buy it. You are not going to buy the barbecue stuff. We didn't

:24:56. > :24:59.turn on the gas or we turned off the power. We starting to see through

:25:00. > :25:08.some of the excuses. That's all I'm saying. An interesting picture of

:25:09. > :25:12.President Putin. Morgan Stanley, things will only get worse for

:25:13. > :25:18.Russia's battered economy. Morgan Stanley based that judgement because

:25:19. > :25:22.of energy prices, but if we talked about energy prices and oil prices

:25:23. > :25:25.going up, does that mean the Russian economy is rebounding? Certainly sh

:25:26. > :25:30.that's what Putin will be welcoming, but I think, yeah, I'm not sure that

:25:31. > :25:35.I am that pessimistic on the Russia economy. It is a story dictated

:25:36. > :25:38.hugely by oil and gas. There is little else for international

:25:39. > :25:44.investors to pin their hopes on, is there? Yeah. There is the question

:25:45. > :25:49.of sanctions. Russia, which I'm not sure sure the sanctions are going to

:25:50. > :25:52.be lifted unless the Syria talks, Russia is seen as constructive and

:25:53. > :25:55.then the questions of sanctions will start going away. Brilliant. Really

:25:56. > :26:00.nice to see you. Thank you for explaining that. That's it from us.

:26:01. > :26:02.Share a hug with someone. We will see you soon.